Trading Market Overview
The year 2020 was a roller coaster ride for markets worldwide and investors were in a shock. Regardless of foundation, many companies went upside down. But with the arrival of 2021, the market is on the recovery track.
And, the best part is that various markets are recovering at a good speed — investors' hopes are high on them. Whether you are a beginner or an expert, it's vital to know about the trading market overview.
Keeping an eye on a trading marketing overview will help you in many ways. Be it changing your portfolio or buying new stocks in the market, you can improvise your efforts.
In this article, we will have a closer look at the trading market movement to make some smart decisions. To cover a broader aspect, we will have a look at several markets for a better perspective.
Several dominating factors in the trading market
Being in the stock exchange market, it's vital to know that there are several aspects. Be it market sentiments, external impacts, or news updates— factors are many. If you are a beginner trader, one pro tip here is not to panic from the ongoing market volatility.
You need to stick to your technical analysis and fundamental analysis for profitability. On this note, let's have a look at the trading market overview that can bring you higher benefits.
The economy of the US has begun the recovery at a steady pace as COVID cases are going down. The government is working at a pace to bring down the total cases in the country. With the arrival of vaccination, the market has regained investors' faith.
Be it constant push of financial packages, or increasing the vaccination. The market will soon see a massive regain and investors will get benefits from the market.
After the US market, it's vital to know the market overview of the EU market and its movement. The next week's data will be more important for making business decisions. With the economic forecasts coming in this week, it will be a deciding factor for the country.
As of now, the EU region is facing certain problems in dealing with the vaccination rollout. Along with the vaccination, the EU is also facing political issues. The tussle of Mario Draghi for forming his government in crisis is also present.
So, the major political issues of Mario Draghi and vaccination will affect the market in the EU. In this condition, you need to invest in stocks that have strong fundamentals. In the EU market, avoid risking your portfolio on huge volatile stocks.
The UK Market
Apart from the EU market, the United Kingdom's market will experience slow growth. But, as the BoE's meeting is in February, vital market data is about to come. The UK's market experts are saying that there will be slow growth in the first quarter. After the first quarter of 2021, the UK's stock market will pick up the growth.
The reason behind the slow recovery rate in the UK is the longest lockdown but the recovery is on its pace. As per the reports, the country is returning to its before-pandemic state. Investors in the UK country need to wait for more favorable times in the market.
Andrew Bailey, the Governor of Bank of England will release the GDP figures in the upcoming time. This may be a vital factor for the UK's stock market. Along with the UK's GDP data, other minor releases are in the queue.
Turkey's market is looking a little stronger as the Lira is performing well for the past couple of weeks. The Central Bank of the Republic of Turkey which is also known as CBRT is taking strict steps. The CBRT is holding on to its strict monetary policies for cutting down inflation.
This action of the CBRT will give a push to the stock towards a positive side and this approach will take two years for inflation to cut down. But, President Recep Tayyip Erdogan is not happy with this complete activity.
As of now, investors can put their money in the market without any worry. But, there is a risk that the economy will go through high rates if Erdogan loses their patience. You can invest in the Turkish stock market but you need to study some stable stocks first.
China is among those countries that are moving at a pace and investors are feeling confident. But, the issue of high inflation rate coming after Asia, the EU, and the US is still there because it's negative for equities.
On the other side, the government is trying to push up the markets by bringing in liquidity. Ahead of the Chinese New Year, the People's Bank of China (PBOC) is keeping the Yuan at the levels of 6.4 to 6.5 which is a good thing.
The Machine Tool Orders and Current Account will be the hurdles for Japan's Market. The PPI or Producer Price Index is showing the sign of growing pressure amid energy import. The government bond futures of Japan will face friction in growth due to the energy import.
As the Tokyo Olympics will take place in the upcoming time, the stock market will see a positive impact on it. On the latest market close, the USD/JPY pair showed good results as it broke on a higher note. It broke the 100-day moving average at 104.50 for the very first time in the last 7 months. If the US employment data shows strong figures then the USD/JPY pair will experience a rally.
Summary - Trading Market Overview
Before you invest in the upcoming time, these market scenarios 2021 will help you for sure. Regardless you are a beginner or an expert, you need to know about these factors of the trading market. Amid the COVID-19 recovery, people are still preferring to buy safe-haven assets. Most investors are waiting for a big vaccine stabilization as it will give more power to the market.
For forex trading, pick those currencies whose nations are doing a good job in recovery. Along with the technical analysis, you also need to focus on market reports to keep an eye on the dynamic economic changes.
On the other side, the stock market seems to be running well and some companies are flourishing. You can research for best-performing stocks and invest for better & faster returns. All you need to do is, keep a balance between your profit-risk ratio amid the COVID-19.
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